NEW YORK — Raleigh-based Advance Auto Parts announced it is closing more than 500 stores and shedding another 200 independent locations as part of its efforts to revive its struggling business.
Advance Auto said in a statement Thursday that it would be reducing its U.S. footprint as part of a “strategic plan to improve business performance.” The company said it is shuttering a total of 523 of its Advance corporate stores, as well as four distribution centers, and exiting 204 independent locations by the middle of next year.
Specific locations and the total number of employees expected to be impacted were not immediately disclosed. A spokesperson for Advance Auto declined to comment further.
Advance Auto still outlined some wider turnaround efforts in Thursday’s announcement. Despite these sizeable closures, the company noted goals like an “acceleration in pace of new store openings” and adopting a standardized operating model. It also pointed to supply-chain consolidation plans, noting that it expected to incur costs related to converting certain stores and distribution centers into “market hubs.”
Last Thursday, Advance Auto posted a loss of $6 million in its third quarter on revenue of $2.15 billion. The company also lowered its full-year revenue outlook for the second consecutive quarter.
The seller of car batteries, motor oil and more has seen some waning sales since the start of the year and is making efforts to boost its balance sheet. Earlier this month, the company closed a $1.5 billion sale of Worldpac, its automotive parts wholesale distribution business, to investment firm Carlyle.
In 2018, the company relocated to Raleigh from Roanoke, Virginia, where it was founded in 1932. Advance Auto primarily operates in the U.S. but also has some corporate stores and independent locations in Canada, Mexico, the Cayman Islands, Turks and Caicos, and The British Virgin Islands. As of Oct. 5, Advance Auto operated more than 4,780 stores and served 1,125 independently owned, Carquest-branded locations.
Shares of the company closed up less than 1% Thursday, but the stock is down 33% year to date.
